NSC Calculator (National Savings Certificate)
Calculate NSC maturity amount at 7.7% interest rate. National Savings Certificate matures in 5 years with Section 80C tax benefits.
This calculator is designed for India — rates and rules are based on Indian regulations. Outside India? Try our Long-term Savings Calculator →
Rate: 7.7% p.a. compounded half-yearly (FY 2024-25) · Tenure: 5 years · No maximum limit
How to use
- Enter the investment amount (principal).
- Current NSC rate of 7.7% p.a. is applied.
- Interest compounds half-yearly but is paid at maturity.
- Years 1-4 interest qualifies for 80C reinvestment deduction.
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NSC (National Savings Certificate) is a fixed-income investment scheme available at India Post offices. It offers a guaranteed return of 7.7% per annum (FY 2024-25), compounded half-yearly but paid out only at maturity after 5 years. The investment qualifies for deduction under Section 80C up to ₹1.5 lakhs per year.
A unique feature of NSC is that the interest accrued each year (except the final year) is deemed to be reinvested in NSC, making it eligible for additional 80C deduction — effectively increasing your 80C benefit beyond your initial investment. NSC has no maximum investment limit, making it suitable for investors who have already maxed out their PPF or ELSS quota.
Frequently Asked Questions
What is the current NSC interest rate?
7.7% per annum for FY 2024-25, compounded half-yearly. The rate is set by the government and reviewed quarterly, similar to PPF and other small savings schemes.
How does NSC provide additional 80C benefit?
Interest accrued in years 1 through 4 is treated as reinvested in NSC, qualifying for 80C deduction in the following year. For example, interest earned in year 1 can be claimed as 80C in year 2's tax return.
Can I withdraw NSC before maturity?
Premature encashment is not allowed except in cases of death of the holder, court order, or forfeiture by a pledgee (e.g., a bank). There is no premature exit option for the investor unlike bank FDs.
Is NSC better than FD?
NSC typically offers a slightly higher rate than comparable bank FDs and has the 80C tax benefit. However, FDs offer more flexibility with premature withdrawal options. For the specific 5-year lock-in period, NSC is generally more tax-efficient.
Disclaimer: Results are estimates for informational purposes only and do not constitute financial, tax, or investment advice. Figures may vary based on actual terms. Always consult a qualified financial advisor before making financial decisions.